[+] Local Governments ‘Holding Back Cities’

Australians have always prided themselves on their enviable lifestyle, but our cities are no longer the world’s most liveable. Affordability, cost of living and traffic congestion are handicapping Australian cities, according to data presented by urbanist Professor Greg Clark at the ULI Australia summit in Sydney this week. But Clark maintains that boosting housing supply comes down to incentivising local governments to encourage and enable density and a mixture of housing type and tenure. “The problem is the Australia brand is actually fantastic, but the product is not as good as the brand,” Clark says. “Australian cities [are falling behind] relative to other global cities. Australian cities are improving but not as fast as the best cities in the world. “The data proves that Australian cities still have a way to go in this regard. There is a pathway for Australian cities to improve … but the pace is not fast enough.” According to Clark, the perceptions of Australian cities have fallen the most over the past four years, driven by affordability, climate change response and vulnerability. The cities are seen as a safe harbour for investment, but the amenity and sustainability of the lucky country has eroded. ▲ Urbanist Prof Greg Clark: the pace must increase. Clark says Australian cities are investing in game-changing infrastructure across New South Wales, Victoria and Queensland that will reshape the urban future of these states. He says the investment in infrastructure needs to be scaled up and sustained. The urbanisation of Australia has followed the models of economy from commodities to industrial to the knowledge and services economy. But the pace at which Australian cities are evolving needs to kick up a gear, according to Clark. “You have to adjust your cities more quickly than other cities in the OECD,” he says. “That’s why investment in infrastructure is so important but you’ve got to speed it up. It’s about reinventing your city centres and thinking about the new Australia. “There are three things missing in Australian cities and you have a unique chance to put them all right.” Clark says political alignment is necessary across tiers of government in order to enable change, and collaboration on place leadership. He also believes local governments are too risk-averse and anti-density. “Local governments have been given no incentive to advance densification. The inverse incentive that they have is to oppose density because the community doesn’t want it,” he says. ▲ Infrastructure programs must happen faster, Clark says. According to Clark, local governments need to embrace sustainable high-density projects and rapid transport to alleviate the pressure points in cities’ liveability and amenity. He says while there is a competitive nature between Australia’s capital cities along the eastern seaboard, there needs to be a trade consortium to compete in an international market against other regional blocs. “Every city has a nascent DNA. There’s some specificity in the DNA of Sydney that differs to the DNA of Melbourne. Sydney versus Melbourne is more or less a street fight. “Enjoy your rivalry but don’t allow it to prevent you from exploring the synergies of a south-east Australian cities [consortium].” Clark is a big fan of cities, he loves the “thrum of millions of people moving” in time to the heartbeat of the CBD. But, Clark argues, city platforms need to reinvent themselves with a view to creating habitat, innovation and experience. ▲ Clark says says some of the most successful and vibrant cities in the world, including Shanghai, blend office, residential, retail and civic amenities. Clark says moving to a diverse mixed-use city centre would ensure activity across CBDs every day of the week. He says some of the most successful and vibrant cities in the world, including Sao Paolo, Shanghai and Seoul, blend office, residential, retail and civic amenities to provide a compelling city centre where people wanted to live, work and play. Urbanisation is not a dirty word, according to Clark, who says good urbanisation anticipates growth and encourages high-capacity public transport and density. He says cities need to develop a mix of tenures and types in housing supply, and a decarbonisation and resilience action plan. Climate resilience is also a key factor in the success of our cities in the future. Also speaking at the ULI Australia summit, global strategist from the MIT centre for real estate Jacques Gordon says the conversation between climate science and real estate is still in its infancy but will shape the built environment in CBDs of the future. Gordon says insurance rates are climbing into the double digits off the back of climate risk exposure, which will drive investment into “hardening of assets” to future-proof buildings. Climate risk data is being applied to institutional asset portfolios with a view to understanding risk to the value of the asset through climate change or policy upheaval. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] Local Governments ‘Holding Back Cities’

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[+] Local Governments ‘Holding Back Cities’

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